Consumer electronics distributor Wo Kee Hong has formed a joint venture with a window company of the Zhongshan municipal government to build a warehouse store chain which will eventually span Southeast Asia and Europe.
The companies are planning to invest more than $100 million over the next two years to establish warehouse stores in Malaysia, Singapore and in Zhongshan city, which will sell electronic and electrical appliances to consumers at wholesale prices.
Wo Kee Hong will control 60 per cent of the joint venture and the remaining share will be held by Zhongshan government's Yue Zhong Holdings.
Wo Kee Hong yesterday signed a letter of intent with Yue Zhong to set up a 'mega warehouse' in Macau, the first such store to be operated by the company outside Hong Kong.
Vice-chairman Richard Lee Man-fai said an initial $10 million would be invested in the 200,000 square foot Macau store, which is scheduled to open in January.
Most of the electronic products sold by the store will be made in Zhongshan city.